Chapters 1-10 (D)

In the 1930s, the number of cars being produced in America plummeted from 5.3 million units in 1929 to 2.4 million in 1930. From 1929 to 1932, sales of new automobiles fell by 75 percent and in 1932, automobile companies had a combined loss of $191 million. The drop in car ownership can be attributed to the high prices of cars and gasoline. In addition, the market for luxury cars disappeared and the market for lower-priced cars doubled from 1932 to 1933. Consequently, half of all automobile companies closed. Despite the glum outlook for automobile companies, Ford enjoyed enormous success with its Model A car. In the first two weeks of production, the cars were sold out. 1,261,053 Model A cars were sold in 1930.
Picture of a restored Ford Model A: 

source: Ford Model A Automobile

Prior to the Great Depression, GM and Ford each had control of a third of the car market and smaller companies shared the final third. GM did particularly well in the Great Depression by catering to poorer consumers by axing many of its luxury car brands and shifting its attention to Chevrolet, its high-volume, low-priced car. GM also incentivized people to buy Chevrolet cars by offering financing at a time when banks were not loaning much money. During the Great Depression, Ford, General Motors, and Chrysler became the dominant automobile companies. In 1939, the "Big Three" accounted for 90% of U.S. automobile production. Hudson, Nash, Packard, Studebaker, and Willys-Overland comprised of most of the last 10% share. These companies mostly produced luxury and mid-priced cars, which caused a steep decline in sales as the demand for expensive cars. From only an 8% market share before the Great Depression, Chrysler became a powerful player because of its high production rate, which was about 90 cars per hour. In addition, Chrysler’s Airflow design, famed for its aerodynamic efficiency, became an industry standard. 
Picture of a restored Chrysler Airflow:

source:  Chrysler Airflow (1934)

sources: How Automakers Accelerated Out of the Great Depression

The Auto Industry 1930-1939

Ford Model A Automobile